Unit 20 Investigating Corporate Social Responsibility Assessment Brief 2026

Unit 20 Investigating Corporate Social Responsibility Assessment Brief

Unit in Brief

Learners develop an understanding of how businesses adopt policies to respond to challenges and how they are socially responsible.

Unit Introduction

In this unit, you will learn how corporate social responsibility (CSR) and ethical behaviour are part of business in the modern marketplace. Consumers make informed decisions about who they select to provide the goods and services they use. You will see how demonstrating a strong corporate social image can lead to a competitive advantage. Businesses that respect and care for the environment and the communities in which they operate, and are also concerned with making the right choices, are more likely to be successful in winning or maintaining customers. You will understand how this incurs additional costs to the business.

You will investigate how major businesses demonstrate their CSR to different stakeholder groups. You will consider how some of the current CSR issues impact on selected businesses and how legislation can encourage businesses to act more responsibly.

This unit will enable you to make an informed choice on suitable CSR businesses for employment or training.

Learning aims

In this unit you will:

A Examine the CSR issues facing large private sector businesses

B Investigate the benefits and drawbacks for businesses of adopting a CSR policy

C Review the CSR record of a private sector business.

Summary of unit

Content

Learning aim A: Examine the CSR issues facing large private sector businesses

A1 CSR issues and the impact on stakeholders

Definition of CSR. Key stakeholder groups:
o owners
o employees
o customers
o suppliers
o governments
o local communities.

A2 Environmental issues

Waste reduction and recycling. Sustainability of resources. Carbon and pollution reduction initiatives. Sustainability.

A3 Consumer protection issues

Statutory and legal requirements:

• product safety
• food labelling
• misleading and inappropriate advertising
• false descriptions
• effect of products on consumer health.

A4 Supply chain and community issues

Statutory and legal requirements:

• the fair treatment and working conditions of employees of key suppliers
• minimum/living wage for both own and suppliers’ workforce
• restrictive trading practices.

A5 Methods of strengthening the CSR image of a business

Promoting diversity and inclusion. Transparency with consumers. Transparency in financial matters. Education and support for the local community. Environmental management.

Learning aim B: Investigate the benefits and drawbacks for businesses of adopting a CSR policy

B1 Benefits of acting responsibly

Improved public opinion. Improve customer loyalty/brand image. Ability to charge premium prices. Enhanced recruitment, motivation and staff retention. Reduced pressure from government and other stakeholder groups.

B2 Potential drawbacks from adopting a corporate socially responsible approach to business

Opportunity cost of implementing policies. Distraction from core business objectives and lowering of operating profits. Smaller businesses less able to trade in a CSR way due to costs. Perceived as a ‘green washing’ exercise with little actual substance. Cost versus benefit analysis of CSR.

B3 The costs and benefits of seeking recognition from external bodies

Types of bodies: o Investors in People o Business in the Community o Fairtrade Foundation o FTSE4Good. Advantages to the business of recognition. Role of the external body to monitor business ethics and policies and assist in organisational change.

Learning aim C: Review the CSR record of a private sector business

C1 CSR/social audits

Definition and purpose of CSR reports/social audits. Internal stakeholders. External stakeholders.

C2 Corporate governance and executive pay

Division of responsibilities, divorce of ownership and control. Decision makers have the requisite skills, principal agent problem. Identification of risk. Appropriate internal checks and controls, such as remuneration committees.

C3 Financial responsibilities

Responsibility to pay taxes promptly/tax avoidance. Corrupt practices, including bribery and fraud. Excessive remuneration, severance packages and corporate bonus systems.

C4 Employment and diversity policies

Promotion of diversity in the workplace. Inclusion and equal opportunities in all areas of the business, from recruitment to promotion, and training opportunities. Health and safety responsibilities.

C5 Help for communities

Impact of the business on the local community: o support for local projects o volunteering in the community o provision of education and training opportunities o job creation for local workers.

Assessment Criteria

Essential information for assignments

The recommended structure of assessment is shown in the unit summary along with suitable forms of evidence. Section 6 gives information on setting assignments and there is further information on our website.

There is a maximum number of three summative assignments for this unit. The relationship of the learning aims and criteria is:

Learning aim: A (A.P1, A.P2, A.M1, A.D1)

Learning aim: B (B.P3, B.P4, B.P5, B.M2, B.D2)

Learning aim: C (C.P6, C.M3, C.D3)

Further information for teachers and assessors

Resource requirements

For this unit, learners will need access and facilities to research business materials.

Essential information for assessment decisions

Learning aim A

It is expected that learners will select two large private sector businesses (250+ employees). It would be useful for learners to select businesses from different industries, e.g. leisure and food, or by sector, e.g. a secondary sector business and a tertiary sector business.

For distinction standard, learners will evaluate how one business has responded to an appropriately chosen recent issue. The individual report must evaluate how the business has responded to this change concluding with the impact on its CSR image.

For merit standard, learners will compare and contrast CSR issues from relevant and up-to-date case studies across different businesses.

For pass standard, learners will include in their report coverage of two businesses, be fit for purpose, professional, and written in appropriate business language. The report must include examples from articles that have been individually researched, selected and sourced.

Learning aim B

The business selected for this assignment must be a different business from the one used in the final assignment, but both can be used in the first assignment.

The presentation and materials/speaker notes must be professional, business-like and suitable for presentation to decision makers in a business. Learners will be prepared to answer audience questions on their presentation and show a firm grasp and understanding of the information presented.

For distinction standard, learners will deliver a presentation with notes that clearly include references to evaluation of the role of CSR, and how an external body has supported organisational change. The presentation will be to a very professional standard.

For merit standard, learners will have demonstrated clear analysis through the presentation, and the examples chosen will clearly show how a competitive advantage has been gained.

For pass standard, learners will include in their presentation references to the benefits and drawbacks of a business having a CSR policy, and details on how recognition from a third party has enhanced the reputation of the business.

Learning aim C

This needs to be an individual learner case study of a major private sector business and cover the entirety of its operations.

For distinction standard, learners will include in their case study a clear evaluation of the impact of the CSR record on the chosen business, with focus on its governance across the operations of the business.

For merit standard, learners will include clear analysis of how the CSR record and the policies developed have impacted on the operations of the business.

For pass standard, learners will give a clear explanation of how the CSR record can support the community; this must be demonstrated throughout the case study.

Links to other units

This unit has links with most of the other units in the specification, particularly Unit 1: Exploring Business.

Employer involvement

This unit would benefit from employer involvement in the form of:

• guest speakers
• participation in audience assessment of presentations
• design/ideas to contribute to unit assignment/case study/project materials
• work experience
• business materials as exemplars
• support from local business staff as mentors.

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